DEWA signs Power Purchase Agreement with Masdar for third phase of the Mohammed bin Rashid Al Maktoum Solar Park

Dubai Electricity and Water Authority (DEWA) has signed a Power Purchase Agreement (PPA) with Abu Dubai Future Energy Company (Masdar), for the 800MW third phase of the Mohammed bin Rashid Al Maktoum Solar Park.

The agreement was signed by HE Saeed Mohammed Al Tayer, MD & CEO of DEWA, and HE Dr Sultan Ahmed Al Jaber, UAE Minister of State and Chairman of Masdar, with HE Mohamed Jameel Al Ramahi, CEO of Masdar also present.

The signing ceremony was attended by DEWA staff including Waleed Salman, Executive Vice President of Strategy and Business Development, Nasser Lootah, Executive Vice President of Generation, Hussain Lootah, Executive Vice President of Transmission Power, Khawla Al Mehairi, Vice President of Marketing and Corporate Communications and Jamal Shaheen Al Hammadi, Vice President of Special Projects.

Earlier this year, DEWA announced the Masdar-led consortium as selected bidder for the third phase of the solar park. The consortium bid the lowest cost of electricity.

“We are pleased to sign the Power Purchase Agreement with Abu Dubai Future Energy Company to produce 800MW based on the Independent Power Producer model for the third phase of the Mohammed bin Rashid Al Maktoum Solar Park, which is the largest single-site solar park in the world, with a planned capacity of 5,000MW by 2030. The agreement with Masdar supports the directives of His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE, and his brother His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to support the growth of the promising clean energy sector, and our efforts to achieve the Dubai Clean Energy Strategy 2050, launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum to diversify the energy mix so clean energy will generate 7% of Dubai’s total power output by 2020, 25% by 2030 and 75% by 2050. The directives of His Highness are the roadmap that guides our ambitious initiatives and development projects. The agreement also supports the Dubai Plan 2021 to promote sustainability and happiness in Dubai, and achieve the aspirations of its citizens and residents, and DEWA’s vision to become a sustainable innovative world-class utility,” said Al Tayer.

“Masdar is proud to partner with DEWA on this important milestone in the development of the UAE’s solar energy capacity. This agreement demonstrates the competitiveness of solar as a commercially-viable clean energy source for electricity generation. It is through ambitious projects of this scale that Masdar is able to drive the clean technology industry forward,” said HE Dr Sultan Ahmed Al Jaber.

“Today’s signing continues the strong momentum created at the outset of the project thanks to DEWA’s efficient tender process. The Mohammed bin Rashid Al Maktoum Solar Park is a major undertaking which will become an international reference point for the renewable energy industry,” said Mohamed Jameel Al Ramahi, CEO of Masdar.

“Through the Solar Park, DEWA is making a significant contribution to the UAE’s vision for a green economy. The collaboration between all parties to reach this milestone has been exceptional, and we look forward to bringing Masdar’s expertise and experience from the past 10 years to bear, in order to successfully deliver this project for the UAE,” added Al Ramahi.

In November 2015, His Highness Sheikh Mohammed bin Rashid Al Maktoum launched the second phase of the Mohammed bin Rashid Al Maktoum Solar Park. In June 2016, His Highness witnessed the signing of a Memorandum of Understanding (MoU) with the Masdar-led consortium to implement the third phase of the solar park based on the IPP model. The MoU signing was attended by HH Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance, and HH Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs. The 800MW third phase will be operational in 2020 to coincide with the World Expo 2020 in Dubai. DEWA also launched the largest Concentrated Solar Power (CSP) project in the world, based on the IPP model, with a planned capacity of 1,000 MW by 2030.

HH Sheikh Mohammed bin Rashid Al Maktoum launched the Mohammed bin Rashid Al Maktoum Solar Park at Seih Al Dahal in early 2012. The first phase was successfully completed the next year, and is producing 13MW.

The Mohammed bin Rashid Al Maktoum Solar Park includes a Creativity & Innovation Centre that will be equipped with the latest renewable and clean technologies to sharpen national capabilities, boost the competitiveness of business, develop new renewable energy technologies, support the overall regional advancement of the industry, and raise social awareness about renewable and sustainable energy. The Research and Development Centre will conduct studies for industrial and social requirements, scientific research, link researchers, academics and developers, and devise strategies for innovative and productive ideas. It has two testing facilities, one for photovoltaic solar testing and the other for concentrated solar power (CSP). The centre is currently testing 30 modules of photovoltaic panels from global specialist manufacturers to check the properties, analyse the results, and use them in research and development. It collaborates with international organisations on soiling and dust mitigation on photovoltaic equipment. The tests are currently being performed to set a baseline for the development of specifications, tests and standards for photovoltaic equipment.